Cheap Car Insurance

Cheap Car Insurance Tricks

Car insurance is legally required on any vehicle driven, and by using every available discount and savings plan possible, drivers could pay less than $30 per month for their coverage. The exact discounts available vary depending on the insurance provider, the specific levels of coverage, the insured drivers, and past claim records, but by knowing the types of discounts available, consumers can approach their car insurance agent confident about securing a lower rate.

Tips Everyone Can Use

No matter which insurance provider you choose or what specific driving records look like, certain discounts apply universally if drivers take advantage of them:

• Higher Deductibles: Raising the deductible on your insurance policy will lower your premiums, perhaps by $100 or more per coverage period depending on the difference between old and new deductibles. Drivers should note, however, that they must be able to cover that deductible in case of an accident.
• Combination Policies: Many insurance companies provide discounts for insuring more than one vehicle (two cars, a car and a motorcycle, adding a boat, etc.), or combining car insurance with life or home insurance.
• Lower Coverage: By choosing only the basic required coverage, drivers can save significant money on their policies. In certain circumstances, however, such as leases or cars that are not fully paid, drivers may still be required to carry more than the minimum insurance, and minimums vary by state.
• Full Payment: Most insurance companies offer minor discounts if the policy is paid in full rather than strung out through monthly payments. To save for this, drivers can put away a little each month and be able to take advantage of the discount without a sudden hefty bill.
• Prompt Payments: Several companies offer discounts to clients who demonstrate a history of prompt payments.

Driver Discounts

Different types of drivers may be eligible for substantial discounts on car insurance, including:

• Safe drivers who have not had insurance claims, speeding tickets, or accidents in a certain period of time (generally 12 months or more).
• Older drivers are generally considered less at risk for accidents; price breaks are generally made at 21, 25, and 30 years of age.
• Good students (honor roll, etc.) may be eligible for a good will discount from their insurance company.
• Individuals with good credit ratings, which indicate financial responsibility, may be offered minor discounts.
• Drivers who opt for public transportation, carpooling, and other conservation techniques may qualify for low mileage discounts (cars that are driven less have a lower risk of accidents).

Types of Cars Insured

Different cars with different characteristics are insured differently. For example:

Sports cars usually have higher insurance rates.

• Sports cars are generally more expensive to insure because they imply a risk of higher speeds and a greater tendency toward risky driving.
• Trendy cars with higher price tags are more tantalizing to thieves and may be more expensive to insure.
• Large vehicles such as SUVs and oversize trucks that could cause greater damage in an accident (resulting in higher insurance payouts) may be more expensive to insure.
• Cars that are fully paid for may qualify for discounts because the insurance company will not need to compensate a bank or dealer as well as the owner.
• Cars with multiple safety features – airbags, anti-lock brakes, rear seat shoulder belts, etc. – usually qualify for cheap car insurance rates because there is less risk of bodily injury in case of an accident.
• Cars with security features such as active and passive alarms, locking steering, or unique identification numbers are less likely to be stolen and frequently qualify for discounts.

Finding Cheaper Policies

In addition to taking advantage of available discounts, drivers can often find cheaper insurance rates by choosing the right company. Depending on an individual’s associations, they may be able to purchase discounted insurance through professional or social memberships such as unions or AARP. Online insurance companies may offer lower rates because they do not maintain physical offices and their overhead prices are lower. Simply comparing insurance companies periodically – particularly after a significant change such as growing older, buying a new car, moving to a new state, or paying off a car – can result in lower rates for drivers willing to switch companies if the opportunity arises.

The following companies are well known for their friendliness in helping drivers find the best rates possible:

• Progressive
• Esurance
• Geico

Cheap Car Insurance Warnings

While lower car insurance rates may be appealing, drivers should be aware of potential problems with deeply discounted policies.

• The cheapest policies typically do not include extras such as towing coverage or roadside assistance.
• Initial discount rates may apply only for a limited time to new clients: investigate the terms and conditions of a new policy carefully before committing to the coverage.
• Cheap policies may include hidden extra fees such as telephone support charges or per-claim paperwork fees.

In Conclusion

Cheap car insurance is easy to find if drivers are willing to take the time to investigate different options for lowering their rates. Knowing what policies are available and how to take advantage of discounts can help keep drivers covered for far less than they might imagine.